REGISTERED NUMBER: 02925650 (England and Wales) |
Plaion Limited |
Group Strategic Report, |
Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
REGISTERED NUMBER: 02925650 (England and Wales) |
Plaion Limited |
Group Strategic Report, |
Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 31 March 2023 |
Plaion Limited (Registered number: 02925650) |
Contents of the Consolidated Financial Statements |
for the year ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Notes to the Consolidated Financial Statements | 14 |
Plaion Limited |
Company Information |
for the year ended 31 March 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
178 Buckingham Avenue |
Slough |
Berkshire |
SL1 4RD |
Plaion Limited (Registered number: 02925650) |
Group Strategic Report |
for the year ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
Review of business |
We aim to provide a balanced summary review of the development of our business during the year and its position at year end. Our review is consistent with the size of our business and is written in the context of the risks and uncertainties we face. |
As a distributor within the entertainment sector we represent both own as well as third party companies who have a combination of video games, video games accessories, consoles and other related products, and who wish us to market and deliver these products to high street retailers, online retailers, and supermarkets in the United Kingdom, Scandinavia and Benelux economic areas. Additionally we act as international sales agent and distributor for our parent company when representing our own published games (under the label Deep Silver amongst others) in geographic areas where we do not have an own operation (such as Middle East, ~Easter Europe, and India). |
Principal risks and uncertainties |
The company is a subsidiary of PLAION GmbH, in which risks are managed at both group and local company level. The management of the business and the nature of the group's strategy are subject to a number of risks, which are monitored at both levels. |
The directors set out below the principal risks facing the business. Where possible, processes are in place to monitor and mitigate such risks. |
Competition - The market in which the company operates is highly competitive. Both from the point of view of securing distribution contracts against other distributor/publishers as well as from publishers who may prefer to perform the publishing of their own game rather than outsourcing it to a partner such as PLAION. |
Consumer Choice - On a product level where there is downwards pressure on price and the additional risk of being unable to meet customers' expectations with quality and or innovation. Policies of constant price monitoring, forward weeks cover risk monitoring of stock with retailers and ongoing market research are in place to mitigate such risks. |
Product Obsolescence - The majority of sales are secured on consoles from Sony, Microsoft and Nintendo. Historically these consoles have been upgraded in cycles of between 6 and 8 years. This means that the games are subject to both the installed base (number of the consoles sold in each country) and the age of the console (whereas the older a console is the more likely the consumer may delay new video game purchasing decisions to wait for the new console). New hardware for both Sony and Microsoft was launched in the past twelve months and as such the installed base will take time to build although, there has been some technical advancements that allow consumers to have "seamless" upgrades of previous gen games when upgrading the hardware which has aided the confidence of consumers to continue buying older gen as they have certainty that they can play on the new hardware when purchased. Not all games have this "smart delivery" and there will be some challenges still with sales volumes until the next gen hardware is available and bought in greater numbers (peak can be at year four of a cycle). |
New Technologies - Digital downloading of games as a purchasing option is often reserved by the game publisher themselves, and even for own published games these are performed at a head quarter level. The other newer risk is that of streaming of games, and subscription models both of which together would challenge the historic convention of games ownership. |
Ukraine Conflict - Because of the currently ongoing conflict in Ukraine there may be a small impact to fees earned from selling to Ukraine and Russia in the next financial year. These are considered immaterial to the overall trading though. |
Policies on financial risks such as currency exposure are set out in the financial notes later in the audited accounts. |
Plaion Limited (Registered number: 02925650) |
Group Strategic Report |
for the year ended 31 March 2023 |
Trading update |
During the trading year the company and group have had a number of items of strategic importance that it needs to highlight. |
It divested its branch offices in Nordic and Benelux countries to its parent company PLAION GmbH, and post balance sheet date it made the decision to merge its subsidiary Splatter Connect Limited into PLAION Limited and to cease the trading activities that it was involved in. |
The company has benefitted from strong new releases of video games notably from Sonic Frontiers, Call of Duty: Modern Warfare 2, LEGO titles from Warner Games, and Turtle Beach gaming headsets. |
Catalogue performed stronger than the year before as the commercial and sales teams worked closely to deliver promotions to retailers that ensured exposure and increased sales performance to retailers especially with products that were more family friendly and households with school children learning for home sought to be entertained. |
Deep Silver released Saints Row during the year which was received moderately well. |
The company also looks forward to the new releases coming from its in house studios and its globally renowned video game titles that the company has responsibility for in its International distribution network. The network is as follows: |
The Balkans (Slovenia, Croatia, Bosnia, Serbia), Greece, Turkey, Cyprus, Israel, Middle East, South Africa, and India |
We consider our key performance indicators are those that communicate our stock and debtor efficiency as well as those that illustrate our sales and gross margin result. |
2023 | 2022 |
£ | £ |
Turnover | 39,564,147 | 70,270,478 |
Gross profit | 5,973,806 | 8,770,418 |
Gross profit margin | 15.1% | 12.5% |
N.B. The 2023 balances above represent continuing operations, thus excluding the financials of the Nordic and Benelux branches. |
Debts and stocks |
Debtors at the end of the year were £9.0m (2022: £11.4m) representing a DSO of 39 (2022: 50) which is an efficient collection cycle. |
Stocks at the end of the year were £0.9m (2022: £1.2m) which is an average stock holding in days of 5 days (2022: 6 days) which represents excellent stock efficiency and a good improvement on prior year. |
We consider these to be in line or lower than the industry average. |
Results |
The profit for the year, after taxation, was above expectations set at the start of the year, and the outlook is positive despite the branch offices not contributing to overall turnover following separation. |
On behalf of the board: |
Plaion Limited (Registered number: 02925650) |
Directors' Report |
for the year ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
Dividends |
The total distribution of dividends for the period ended 31 March 2023 will be £3,000,000 (2022: £2,000,000). |
Directors |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Auditors |
The audit business of Haines Watts Farnborough LLP was acquired by Cooper Parry Group Limited on 14 |
November 2023. Haines Watts Farnborough LLP has resigned as auditor and Cooper Parry Group Limited has |
been appointed in its place. Cooper Parry Group Limited will be proposed for re-appointment in accordance with |
section 485 of the Companies Act 2006. |
On behalf of the board: |
Independent Auditors' Report to the Members of |
Plaion Limited |
Opinion |
We have audited the financial statements of Plaion Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Plaion Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Plaion Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
178 Buckingham Avenue |
Slough |
Berkshire |
SL1 4RD |
Plaion Limited (Registered number: 02925650) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 31 March 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
Turnover | 4 | 39,564,147 | 34,716,504 | 74,280,651 |
Cost of sales | (33,590,341 | ) | (31,335,481 | ) | (64,925,822 | ) |
Gross profit | 5,973,806 | 3,381,023 | 9,354,829 |
Administrative expenses | (10,942,456 | ) | (2,792,029 | ) | (13,734,485 | ) |
(4,968,650 | ) | 588,994 | (4,379,656 | ) |
Other operating income | 5,804,623 | 1,403,952 | 7,208,575 |
Operating profit | 835,973 | 1,992,946 | 2,828,919 |
Profit/loss on sale of operatn | 7 | - | 1,720,793 | 1,720,793 |
835,973 | 3,713,739 | 4,549,712 |
Interest receivable and similar income | 12,421 | - | 12,421 |
Interest payable and similar expenses | 8 | (24,176 | ) | (6,157 | ) | (30,333 | ) |
Profit before taxation | 9 | 824,218 | 3,707,582 | 4,531,800 |
Tax on profit | 11 | (141,528 | ) | (838,823 | ) | (980,351 | ) |
Profit for the financial year |
Other comprehensive income | - |
Total comprehensive income for the year | 3,551,449 |
Profit attributable to: |
Owners of the parent | 3,551,449 |
Total comprehensive income attributable to: |
Owners of the parent | 3,551,449 |
Plaion Limited (Registered number: 02925650) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 31 March 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
Turnover | 4 | 70,270,478 | - | 70,270,478 |
Cost of sales | (61,500,060 | ) | - | (61,500,060 | ) |
Gross profit | 8,770,418 | - | 8,770,418 |
Administrative expenses | (9,387,145 | ) | - | (9,387,145 | ) |
(616,727 | ) | - | (616,727 | ) |
Other operating income | 3,666,968 | - | 3,666,968 |
Operating profit | 3,050,241 | - | 3,050,241 |
Interest receivable and similar income | 814 | - | 814 |
Interest payable and similar expenses | 8 | (53,029 | ) | - | (53,029 | ) |
Profit before taxation | 9 | 2,998,026 | - | 2,998,026 |
Tax on profit | 11 | (622,693 | ) | - | (622,693 | ) |
Profit for the financial year |
Other comprehensive income | - |
Total comprehensive income for the year | 2,375,333 |
Profit attributable to: |
Owners of the parent | 2,375,333 |
Total comprehensive income attributable to: |
Owners of the parent | 2,375,333 |
Plaion Limited (Registered number: 02925650) |
Consolidated Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 14 | 320,522 | 472,959 |
Investments | 15 | - | - |
320,522 | 472,959 |
Current assets |
Stocks | 16 | 878,011 | 1,156,299 |
Debtors | 17 | 9,019,352 | 11,434,158 |
Cash at bank and in hand | 3,212,869 | 3,885,376 |
13,110,232 | 16,475,833 |
Creditors |
Amounts falling due within one year | 18 | 6,599,061 | 10,673,166 |
Net current assets | 6,511,171 | 5,802,667 |
Total assets less current liabilities | 6,831,693 | 6,275,626 |
Provisions for liabilities | 20 | 61,231 | 56,613 |
Net assets | 6,770,462 | 6,219,013 |
Capital and reserves |
Called up share capital | 21 | 200,000 | 200,000 |
Retained earnings | 22 | 6,570,462 | 6,019,013 |
Shareholders' funds | 6,770,462 | 6,219,013 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by: |
Mr C McNicol - Director |
Plaion Limited (Registered number: 02925650) |
Company Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 14 |
Investments | 15 |
Current assets |
Stocks | 16 |
Debtors | 17 |
Cash in hand |
Creditors |
Amounts falling due within one year | 18 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 20 |
Net assets |
Capital and reserves |
Called up share capital | 21 |
Retained earnings | 22 |
Shareholders' funds |
Company's profit for the financial year | 3,608,250 | 2,466,074 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Plaion Limited (Registered number: 02925650) |
Consolidated Statement of Changes in Equity |
for the year ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 | 200,000 | 5,643,680 | 5,843,680 |
Changes in equity |
Dividends | - | (2,000,000 | ) | (2,000,000 | ) |
Total comprehensive income | - | 2,375,333 | 2,375,333 |
Balance at 31 March 2022 | 200,000 | 6,019,013 | 6,219,013 |
Changes in equity |
Dividends | - | (3,000,000 | ) | (3,000,000 | ) |
Total comprehensive income | - | 3,551,449 | 3,551,449 |
Balance at 31 March 2023 | 200,000 | 6,570,462 | 6,770,462 |
Plaion Limited (Registered number: 02925650) |
Company Statement of Changes in Equity |
for the year ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements |
for the year ended 31 March 2023 |
1. | Statutory information |
Plaion Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated financial statements incorporate those of Plaion Limited and its subsidiary, as detailed in note 15 (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
Business combinations |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. |
Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that have been be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Turnover |
Turnover comprises revenue recognised by the company in respect of distribution within the entertainment sector and distribution of computing and technology products during the year, exclusive of Value Added Tax and trade discounts. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Office equipment | - 4-13 years on cost |
Fixtures and fittings | - 4-13 years on cost |
Computer equipment | - 20-33% on cost |
Improvements to property | - over the life of the lease |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
2. | Accounting policies - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. |
Consignment stock is held on behalf of suppliers and is excluded from stocks. Under the contracts the company must typically: |
- promote and sell the products with exclusive and non-exclusive rights under the supplier's name; |
- not sell any other products of similar content; |
- seek agreement with the supplier to sell at a lower than previously agreed price. |
No deposit is due to suppliers for consignment stock. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Operating leases |
Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term. |
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management. |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
3. | Key sources of estimation uncertainty and judgements |
Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgement in respect of measuring financial instruments. |
Bad debt provision |
A full line by line review of trade debtors is carried out at the end of each month ensuring the provision is accurate. The provision accrued is calculated dependant on the age of the debt, whether it is being pursued by a solicitor or if the Customer is insolvent. Also, taken into consideration is if the debt is Credit Insured. |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
Depreciation |
The group's tangible assets are depreciated on a straight line basis over their useful economic lives. Management reviews the appropriateness of assets' useful economic lives at least annually and any changes could affect prospective depreciation rates and asset carrying values. |
Stock provision |
There is estimation uncertainty in calculating finished goods stock provisions. A full line by line review of stocks is carried out at the end of each month. Whilst every attempt is made to ensure the finished goods stock provisions are as accurate as possible, there remains a risk that the provisions do not match the level of stock which ultimately proves to be unsaleable. |
Provision for returns |
There are two estimates made each month, both are on the level of analysing the disclosed stocks that a retailer has acquired but remains unsold to the retailers customers (i.e. retail customer/product). First a provision is made for the actual authorised actions (but as yet unclaimed) for promotions and returns and then an assessment beyond that the actual additional risks by what of us being required to issue further credit notes to ensure that each retailer has no more than 8 weeks forward cover based on the most recent weeks sales of that retailer. |
4. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Games publishing | 73,702,671 | 70,147,342 |
Film publishing | - | 214 |
Other | 577,980 | 122,922 |
74,280,651 | 70,270,478 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 38,455,254 | 39,986,149 |
Europe | 35,825,397 | 30,284,087 |
Rest of the world | - | 242 |
74,280,651 | 70,270,478 |
5. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 6,059,130 | 5,079,139 |
Social security costs | 895,880 | 710,951 |
Other pension costs | 190,471 | 158,487 |
7,145,481 | 5,948,577 |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
5. | Employees and directors - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Finance and administration | 19 | 18 |
Sales and marketing | 200 | 125 |
Development | 6 | 8 |
6. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration | 550,147 | 490,915 |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined benefit schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 329,621 | 270,142 |
7. | Exceptional items |
2023 | 2022 |
£ | £ |
Profit on sale of branch operations | 1,720,793 | - |
As per the asset purchase agreement dated 31 March 2023, Plaion Limited transferred the book value of assets and liabilities totalling £1,992,363 relating to both the Nordic and Benelux branches to a fellow group company for cash consideration of £3,713,156. This results in a profit on disposal of £1,720,793 which has been recognised in the profit and loss account. |
8. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank interest | - | 14 |
Other interest payable | 30,333 | 53,015 |
30,333 | 53,029 |
9. | Profit before taxation |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 129,158 | 114,292 |
Loss on disposal of fixed assets | 65,157 | - |
Foreign exchange differences | (153,836 | ) | 6,334 |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
10. | Auditors' remuneration |
2023 | 2023 |
£ | £ |
Fees payable to the company's auditor and associates |
For audit services |
Audit of the financial statements of the group and company | 48,268 | 37,273 |
For other services |
Audit of the financial statements of the company's subsidiary | 1,941 | 8,000 |
11. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 892,957 | 524,537 |
Under provision in prior |
year | (9,163 | ) | 51,358 |
Overseas taxes | 91,939 | - |
Total current tax | 975,733 | 575,895 |
Deferred tax | 4,618 | 46,798 |
Tax on profit | 980,351 | 622,693 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 4,531,800 | 2,998,026 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
861,042 |
569,625 |
Effects of: |
Expenses not deductible for tax purposes | 31,915 | 3,765 |
Capital allowances in excess of depreciation | - | (65,996 | ) |
Adjustments to tax charge in respect of previous periods | (9,163 | ) | 51,142 |
Movement in deferred tax | 4,618 | 61,936 |
Other tax adjustments | - | 2,221 |
Additional oversas tax payable | 91,939 | - |
Total tax charge | 980,351 | 622,693 |
12. | Individual statement of comprehensive income |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
13. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary shares of £1.00 each |
Interim | 3,000,000 | 2,000,000 |
14. | Tangible fixed assets |
Group |
Fixtures |
Improvements | Office | and |
to property | equipment | fittings |
£ | £ | £ |
Cost |
At 1 April 2022 | 140,635 | 7,336 | 457,195 |
Additions | - | - | 29,551 |
Disposals | - | - | (353,747 | ) |
At 31 March 2023 | 140,635 | 7,336 | 132,999 |
Depreciation |
At 1 April 2022 | 7,297 | 5,879 | 229,447 |
Charge for year | 14,064 | 500 | 46,929 |
Eliminated on disposal | - | - | (257,937 | ) |
At 31 March 2023 | 21,361 | 6,379 | 18,439 |
Net book value |
At 31 March 2023 | 119,274 | 957 | 114,560 |
At 31 March 2022 | 133,338 | 1,457 | 227,748 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 April 2022 | - | 638,205 | 1,243,371 |
Additions | 49,615 | 46,639 | 125,805 |
Disposals | (49,615 | ) | (174,830 | ) | (578,192 | ) |
At 31 March 2023 | - | 510,014 | 790,984 |
Depreciation |
At 1 April 2022 | - | 527,789 | 770,412 |
Charge for year | 3,618 | 64,047 | 129,158 |
Eliminated on disposal | (3,618 | ) | (167,553 | ) | (429,108 | ) |
At 31 March 2023 | - | 424,283 | 470,462 |
Net book value |
At 31 March 2023 | - | 85,731 | 320,522 |
At 31 March 2022 | - | 110,416 | 472,959 |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
14. | Tangible fixed assets - continued |
Company |
Fixtures |
Improvements | Office | and |
to property | equipment | fittings |
£ | £ | £ |
Cost |
At 1 April 2022 |
Additions |
Disposals | ( |
) |
At 31 March 2023 |
Depreciation |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 March 2023 |
Net book value |
At 31 March 2023 |
At 31 March 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
Depreciation |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
Net book value |
At 31 March 2023 |
At 31 March 2022 |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
15. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 April 2022 |
and 31 March 2023 |
Net book value |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
16. | Stocks |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Goods for resale | 878,011 | 1,156,299 | 878,011 | 1,156,299 |
17. | Debtors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 4,336,584 | 10,536,207 | 4,231,363 | 10,528,467 |
Amounts owed by group undertakings | 3,812,426 | 136,758 |
Other debtors | 348,057 | 573,329 |
Tax | 317,693 | - |
Prepayments and accrued income | 204,592 | 187,864 |
9,019,352 | 11,434,158 |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
18. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 676,895 | 1,288,845 |
Amounts owed to group undertakings | 2,200,818 | 5,194,695 |
Tax | - | 212,266 |
Social security and other taxes | 686,733 | 319,906 |
VAT | 24,318 | 10,978 | - | - |
Other creditors | 53,362 | 46,350 |
Accruals and deferred income | 2,956,935 | 3,600,126 |
6,599,061 | 10,673,166 |
Included in accruals and deferred income is the provision for returns of £1,629,143 (2022: £1,917,832). |
19. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year | 62,843 | 296,403 |
Between one and five years | 25,553 | 34,228 |
88,396 | 330,631 |
Company |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
20. | Provisions for liabilities |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 61,231 | 56,613 |
Group |
Deferred tax |
£ |
Balance at 1 April 2022 | 56,613 |
Charge to Statement of Comprehensive Income during year | 4,618 |
Balance at 31 March 2023 | 61,231 |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
20. | Provisions for liabilities - continued |
Company |
Deferred tax |
£ |
Balance at 1 April 2022 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 March 2023 |
21. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1.00 | 200,000 | 200,000 |
22. | Reserves |
Group |
Retained |
earnings |
£ |
At 1 April 2022 | 6,019,013 |
Profit for the year | 3,551,449 |
Dividends | (3,000,000 | ) |
At 31 March 2023 | 6,570,462 |
Company |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2023 |
23. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, the company paid £443,392 (2022: £424,117) for internet marketing services to a related party. |
There are no other transactions with related parties or key management that require disclosure. |
Plaion Limited (Registered number: 02925650) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2023 |
24. | Ultimate controlling party |
The immediate parent company is Plaion GmbH, a company incorporated in Austria. |
The ultimate controlling party is Mr L Wingefors, owner of Embracer Group AB (publ.). the ultimate controlling parent company incorporated in Sweden. |
Copies of the consolidated financial statements of Embracer Group AB (publ.). are publicly available and can be obtained from: https://embracer.com/investors/reports-presentations/ |